First Flip in Maryland

[Aj Bowman]

Hi Everyone, I am currently looking for my first house to flip in Maryland. Mostly concentrating on Montgomery Frederick and Carroll counties. But I am struggling to find a house. I am trying to stay away from auctions for my first flip to be on the safer side. However I am getting the feeling that I might need to go that direction. I have a real estate agent looking for me and he sends me houses everyday. I'm just looking for advice to help me improve my search. Any suggestions? Thanks

[David Friedman]

You will most likely need to work with a wholesaler in your area to send you deals or market for deals yourself. The auction has been a consistent source of deals for me although you do need to do your research. If your realtor is sending you homes from the MLS you will have plenty of competition. If you go the auction route, you will need to research if your state is judicial or non-judicial, you will need to be able to determine if you are bidding on a 1st TD and you will need to check back taxes, etc. Know the average costs to rehab a home. For me, a 1,500 sq ft house means approximately $15,000 in rehab. My rule of thumb is, whether it is broken or outdated, you will need to replace it. At auction you can't see the inside, but with risk comes reward. To tell what a home's condition may be on the outside, look at how they take care of their front yard. That will usually give you a good indication without even stepping foot inside.